Credit Suisse Is Now Trading for Pennies on the Dollar. Is the Embattled Stock a Buy?
The Swiss bank Credit Suisse Group (NYSE: CS) has really struggled this year, with the stock now trading down close to 60% and hitting all-time lows.
Credit Suisse has been closely associated with several scandals in recent years and now must put together a transformation plan, which could involve raising capital at a distressed valuation.
Still, one might argue that a lot of the bank's troubles have been priced into the stock, which trades at about 26% of its tangible book value, or net worth. That means you can buy a share of Credit Suisse for 26 cents on the dollar, and if the bank can turn things around, there could be a lot of upside ahead. Given this absurdly cheap valuation, is Credit Suisse stock a buy?
Source Fool.com
